Panic Selling Leads to Limit Down Move in Class III
Panic selling on the dairy product front dominated the markets Friday as Congress passes their $2 trillion coronavirus aid package. Cheddar blocks had only offers and no trades, but fell 15 cents to $1.59 per lb. returning to values we have not seen since this week a year ago. Cheddar barrels fell 6 ¼ to $1.34 per lb. with 5 loads finding homes.
Butter continued its sell off sliding another 10 ¼ cents to $1.48 ¾ with no loads trading hands. Grade A nonfat dry milk fell 4 ½ cents to $0.92 lb. with 3 loads trading. Dry whey was unchanged at $0.33 per lb. with no loads trading.
Class III saw limit moves lower. Finishing the day with March unchanged at $16.23, April fell 38 to $15.32, and May fell 69 cents to $13.87 per cwt. Second half fell 36-68 cents lower.
Class IV milk was unchanged in March at $14.91, April fell 54 cents to $12.64, and May fell 72 cents to $12.28 per cwt.
All eyes will be on the long-term loss of restaurant sales nearby and it is continuing to put pressure on processors nervous about markets for their finished dairy products. The coronavirus aid package includes USDA funds for support of dairy through direct farm payments or product purchases. Time will tell how that support is distributed.